- Amazon could see more consumer packaged goods companies buy ads on its site as sales of food, beverages, and everyday consumables continue to grow during COVID-19.
- Jefferies estimates Amazon could add $12 billion in additional advertising revenue if the company’s able to capture just 1% of the total ad and trade spend by CPG companies.
- As a result, Jefferies is raising its estimates for Amazon’s advertising revenue by 2% to $23.5 billion in 2021 and $49 billion in 2025.
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Amazon’s advertising business stands to gain potentially tens of billions of dollars in additional revenue because of its booming grocery and household sales amid COVID-19.
That’s according to the investment firm Jefferies, which estimates the growth in Amazon’s grocery and household sales could help it tap into an advertising market worth almost $1.2 trillion in the consumer packaged goods space.
As more brands that